Question Orville Company's standard and actual costs per unit are provided below for the most recent...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Question Orville Company's standard and actual costs per unit are provided below for the most recent period. During this time period 400 units were actually produced. Product Standard Product Actual Cost Cost Materials Standard Metres Unit Price Per Metre 3 $1.50 $4.50 Materials price variance = AQ (AP - SP) Materials quantity variance = SP (AQ-SQ) $124.00 U $60.00 U Actual 3.1 $1.60 $4.96 Direct labour Hours Hourly Rate Standard 2.4 $6.00 $14.40 Direct labour rate variance = AH (AR-SR) Direct labour efficiency variance = SR (AH-SH) $500.00 U $240.00 U Actual 2.5 $6.50 $16.25 Variable overhead Hours Hourly Rate Standard 1.5 $3.40 $5.10 Variable overhead rate variance = AH(AR-SR) Variable overhead efficiency variance = SR(AH-SH) -$168.00 F -$136.00 F Actual 1.4 $3.10 Total unit cost $24.00 $4.34 $25.55 Total Variance $620.00 U 400 AP*AQ-SP*SQ $620.00 U For simplicity, assume there was no inventory of materials at the beginning or end of the period. Required Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable. 1. Materials price variance 2. Materials quantity variance 3. Direct labour rate variance 4. Direct labour efficiency variance 5. Variable overhead rate variance 6. Variable overhead efficiency variance =AP*AQ-AQ*SP+AQ*SP-SP*SQ =AQ(AP-SP)+SP(AQ-SQ) First keep AQ no change Then keep SP no change Question Orville Company's standard and actual costs per unit are provided below for the most recent period. During this time period 400 units were actually produced. Product Standard Product Actual Cost Cost Materials Standard Metres Unit Price Per Metre 3 $1.50 $4.50 Materials price variance = AQ (AP - SP) Materials quantity variance = SP (AQ-SQ) $124.00 U $60.00 U Actual 3.1 $1.60 $4.96 Direct labour Hours Hourly Rate Standard 2.4 $6.00 $14.40 Direct labour rate variance = AH (AR-SR) Direct labour efficiency variance = SR (AH-SH) $500.00 U $240.00 U Actual 2.5 $6.50 $16.25 Variable overhead Hours Hourly Rate Standard 1.5 $3.40 $5.10 Variable overhead rate variance = AH(AR-SR) Variable overhead efficiency variance = SR(AH-SH) -$168.00 F -$136.00 F Actual 1.4 $3.10 Total unit cost $24.00 $4.34 $25.55 Total Variance $620.00 U 400 AP*AQ-SP*SQ $620.00 U For simplicity, assume there was no inventory of materials at the beginning or end of the period. Required Given the information above, compute the following variances. Also indicate if the variances are favorable or unfavorable. 1. Materials price variance 2. Materials quantity variance 3. Direct labour rate variance 4. Direct labour efficiency variance 5. Variable overhead rate variance 6. Variable overhead efficiency variance =AP*AQ-AQ*SP+AQ*SP-SP*SQ =AQ(AP-SP)+SP(AQ-SQ) First keep AQ no change Then keep SP no change
Expert Answer:
Answer rating: 100% (QA)
Variance Calculations for Orville Company 1 Materials Price Variance Favorable Following the formula AQAP SP SPAQ SQ AQ Actual Quantity 400 units AP Actual Price 160 per meter SP Standard Price 150 pe... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
The Health, Aging, and Body Composition (Health ABC) study is a 10-year study of older adults. A research project based on this study examined the relationship between physical activity and pet...
-
Explain how covid - 19 has had an impact on air Canada.did it temporarily close or not ? what steps did the organization take in terms of managing their employees? have they since reopned ? Have they...
-
The banker's acceptance and the commercial letter of credit involve four principal parties. Which of the following is not one of those parties? The importer The exporter O The receiving country's...
-
The model of bacterial selection includes no frequency-dependence, meaning that the per capita production of the different types does not depend on the fraction of types in the population. Each of...
-
Rebecca has recently begun keeping her spending under control, but she still cannot fully pay off her credit card. She maintains an average monthly balance of about $1100, and her card charges a...
-
The following table summarizes visits to emergency departments at four hospitals in Arizona. People may leave without being seen by a physician, and those visits are denoted as LWBS. The remaining...
-
On January 8, the end of the first weekly pay period of the year, Royal Companys payroll register showed that its employees earned $11,380 of office salaries and $32,920 of sales salaries....
-
What is executive summary of new juice product in Australia?How to find target market on the basis of geography, demographics, psychology of new juice product in existing market of Australia.
-
A student posed a research hypothesis that there is a difference in temperature between Boston and New York in the month of September. The null hypothesis that during the month of September, the mean...
-
Consider you just graduated college and want to purchase a house. Your dream home is a 4 bedroom, 2 bath, with 2,000 square feet house and is listed at $315,000. Assume you have enough money to put a...
-
A cash incentive given to a producer to lower the cost of production 1.3.2 A situation where one firm fixes a price and other firms accept it as the market price 1.3.3 The spillover effect of an...
-
Prepare SQL Scripts that: Select ALL the BusinessEntityID, LastName, and FirstName fields for the Person's table Fields should be in the above order. Add a sort to the query so LastName is...
-
Suppose there are n jobs and m machines and each job must be processed on each machine. For each job, the machine order is fixed, that is, job j must first be processed on machine j(1) and then on...
-
Consider a symmetric nxn matrix = Q.Define Amin(a'Qr: x= 1) and eargmin{a'Qr: | 1), and for k= 0,....n-1 A = min{a'Qx: ||||=1, z'e, = 0, i=1..., k} e: argmin (zQr: r = 1. r'e =0,i=1....k). a) Show...
-
Specifically break down the financials of Apple streaming music with regards to its EBIT. And
-
Critical reading SAT scores are distributed as N(500, 100). a. Find the SAT score at the 75th percentile. b. Find the SAT score at the 25th percentile. c. Find the interquartile range for SAT scores....
-
You need to understand the approach described in question 3 in More Genetic TIPS before answering this question. A gene that is normally expressed in pancreatic cells was cloned and then subjected to...
-
Many researchers are interested in the transcription of protein-encoding genes in eukaryotes. Such researchers want to study mRNA. One method that is used to isolate mRNA is column chromatography....
-
The type of model building used by Pauling and by Watson and Crick involved the use of ball-and-stick units. Model building can now be done with computer software. Even though you may not be familiar...
Study smarter with the SolutionInn App